Paychex Inc. (PAYX): Today's Featured Diversified Services Winner

Paychex ( PAYX) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day down 0.4%. By the end of trading, Paychex rose 29 cents (0.9%) to $31.44 on average volume. Throughout the day, 2.2 million shares of Paychex exchanged hands as compared to its average daily volume of 2.7 million shares. The stock ranged in a price between $31.05-$31.50 after having opened the day at $31.14 as compared to the previous trading day's close of $31.15. Other companies within the Diversified Services industry that increased today were: Teamstaff ( TSTF), up 13.7%, DLH Holdings ( DLHC), up 13.7%, Willdan Group ( WLDN), up 11.5%, and China Distance Education Holdings ( DL), up 9.7%.

Paychex, Inc. provides payroll, human resource, and benefits outsourcing solutions for small to medium sized businesses. Paychex has a market cap of $11.51 billion and is part of the services sector. The company has a P/E ratio of 21, equal to the average diversified services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 3.5% year to date as of the close of trading on Friday. Currently there are four analysts that rate Paychex a buy, four analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Paychex as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, growth in earnings per share, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Bridgepoint Education ( BPI), down 33.7%, Ambow Education ( AMBO), down 13.4%, Cenveo ( CVO), down 9.8%, and Daegis ( DAEG), down 8.4%, were all losers within the diversified services industry with Visa ( V) being today's diversified services industry loser.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).
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